This bill establishes new notice and compensation requirements for residential tenants who are displaced due to renovations. Under the proposed legislation, landlords must compensate displaced tenants for the reasonable rental cost of a moving truck or van, as well as an amount equal to 12 times the monthly rent paid by the tenant. This compensation is mandated if the landlord has either issued a written notice to quit or filed an eviction action, claiming the need for possession for renovation purposes, or if the tenant is displaced for personal occupancy by the owner or a buyer who has indicated that renovations will occur within six months of the tenant's displacement. Payment is required to be made five days prior to the tenant vacating the unit or within five days of the tenant's displacement, with interest accruing at 18 percent per annum if not paid on time. Additionally, if the payment is not made in full within 30 days, it becomes a lien on the property, which must be recorded to have priority over other claims.

Furthermore, the bill mandates that landlords provide written notice to tenants at least one month before requesting them to vacate for renovation purposes. This notice must outline the specific circumstances under which a tenant can be evicted for renovations and clarify that eviction is not permissible unless those circumstances are met. The Commissioner of Community Affairs is tasked with preparing a model statement for landlords to use in compliance with this requirement. Overall, the bill aims to protect tenants from being misled about their rights and ensure they receive fair compensation when displaced for renovation-related reasons.